EU Drafts Digital Fairness Act to Stop Deceptive Online Practices

The European Commission introduced a new legislative package on Wednesday to regulate online business practices.

The Digital Fairness Act aims to give consumers more control over their digital spending and time. It targets specific tactics that trick users into paying or staying engaged. The draft law is currently under review by EU institutions.

Companies would be required to send reminders before a free trial ends. They must obtain explicit consent before charging customers for the next billing cycle. The proposal also simplifies the process for cancelling online subscriptions. Businesses would need to notify users before automatically renewing contracts.

The draft addresses marketing techniques known as dark patterns. These are design choices that pressure users into making purchases. For example, a hotel booking site might claim only three rooms remain to rush a decision. The rules would also change how dynamic pricing works. Sellers would have to display the current price and the maximum potential cost to a customer waiting in an online queue.

The legislation places specific restrictions on online games and advertising. Children would be prohibited from paying to win or advance to the next level. Marketing and personalized ads would require clear labels, with stricter rules when targeting minors. Users would gain the option to turn off features that encourage endless scrolling, such as video autoplay.

Agustin Reyna, director general of the European Consumer Organisation, called the plan a starting point for major reform. He noted that consumer protection rules had not changed this substantially in twenty years. "We haven't seen that kind of reform in consumer protection in the last 20 years," he said. Reyna argued that a single rulebook simplifies compliance for businesses operating across the bloc. "Instead of having 27 different regulations to adhere to, companies will now only get one," he said.

Critics from the gaming industry argue the proposal is too broad. Video Games Europe and the European Games Developer Federation described the plan as unworkable and disproportionate. They warned that a ban on selling children features that help them advance could cover almost any purchase in a game. Christoph Busch, a consumer law professor at Osnabrück University, countered that businesses relying on addictive design features should review their models. He stated that if a business model depends on such features, "then maybe your business model has to be reviewed."

Catalina Goanta, an associate professor at Utrecht University, described the act as a reasonable compromise. She noted that past EU regulations have made the market harder to access for small online businesses. She suggested that many current problems could be solved by enforcing existing rules more effectively. Busch added that the final text will likely face changes during negotiations. "It will be a difficult trialogue, especially in this climate of simplification and deregulation with a focus on strengthening European competitiveness," he said.

Violations of the act could result in fines of up to six percent of a company's global annual revenue. The European Parliament and the Council of the European Union must still agree on the final text and formally adopt it. Experts expect the document to be modified during the legislative process. Reyna expressed optimism that consumer protection issues will help unite the various political factions in parliament.

The proposal represents a new approach to regulating digital services in the European Union. It shifts some responsibility for user consent and transparency to the platform providers. The final version of the law will determine how these rules are applied across member states.